High Yield Investment Program (HYIP) Safety Tips

go find yourself.

GPR Global – Earn 7% a Day!
NeoRoy Investments – From 4% Daily Profit!
Triumph Technologies Ltd. – Earn 0.25% an Hour!

You have likely seen websites advertising similar attention grabbing headlines. They urge you to open an account and invest your money in what is affirmed to be an excellent investment opportunity. These investments are called HYIPs or High Yield Investment Programs. They consist of investment packages that promise high rates of return with little or no financial risk. Many online HYIPs guarantee returns of 20, 30, and even 100 or more percent per day, and often use vague and murky financial jargon to lend credibility to their business models.

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have stated that all HYIPs that they have reviewed are fraudulent. The SEC has proceeded to warn members of the public about investing in HYIPs and other similar banking-related schemes, declaring that investment programs capable of providing returns that exceed the most generous yields offered by mainstream financial institutions pose a serious threat to the global financial system.

Despite these warnings, millions of individuals proceed to invest in HYIPs. The internet contains a plethora of monitoring sites offering daily updates on thousands of high yield investment programs. Customer reviews abound and we all know a friend or family member who has invested in a program and was happy with the returns they received. Although you should always scrutinize online reviews, as an industry has been created to service the need for fake customer feedback, not all HYIPs are fraudulent.

If you elect to invest money in a high yield investment program, follow these 4 simple tips to reduce the risk of losing your money.

  1. Be curious and always ask questions. You would never do business with a company that conceals the names of its owners or its location. So why would you invest money in a company that refuses to fully disclose how they generate earnings. Exercise skepticism when researching a new investment opportunity and if you can’t find answers to your questions, contact the organization directly. If you’re not fully satisfied with their response, it is likely a sign that you should not invest in their program.
  2. Do not fully trust customer reviews and positive feedback. Not everything written on the internet is the truth and not everyone who posts a review on a  consumer site an independent reviewer. Many businesses engage in devious practices to help boost their ratings. These can be as simple as offering product discounts in exchange for positive reviews, to purchasing fake reviews from companies that leverage cultivated networks of remunerated individuals.
  3. Verify the age of the HYIP. It is difficult to find high yield investment programs that have been operating for longer than a year. Many HYIPs close their doors within weeks of opening, leaving investors with no ability to recoup their initial investment. Beware of this practice which is common in the HYIP industry.
  4. Never invest more money than you can afford to lose. This is perhaps the most important investment advice anyone can receive. If you choose to invest in a HYIP, never invest a sum of money you cannot afford to lose, even if a program successfully passes your scrutiny.

When it comes to investing your money, beware of programs that seem too good to be true. Ideally, you should always choose established financial institutions and investments packages that are certified by your country’s financial system. If you decide to experiment with HYIPs, please follow our 4 tips to help ensure that you do not fall prey to unscrupulous con artists.

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